Goldburd McCone LLP
  • Home
  • About
    • News And Publications
    • Success Stories
    • Testimonials
    • The Smart Taxpayer
  • Attorneys
    • Joseph Goldburd, Esq.
    • Steven Goldburd, Esq.
    • Benjamin Goldburd, Esq.
    • Barry Brick, Esq.
    • Racquel Yarmish, Esq.
  • Practice Areas
  • Blog
  • Contact
Select Page

New York state income taxes could change too

On behalf of Goldburd McCone LLP | Mar 26, 2018 | Tax Collection

The Tax Cuts and Jobs Act of 2017 is set to bring on many changes. Not only will the taxes you pay to the federal government change, but your state taxes could change too as the gears of federalism shift in response. What changes are in store for New York?

According to 24/7 Wall Street, New York residents have the highest taxes compared to all other states. This notion was furthered by Governor Andrew Cuomo who said that the federal tax law “targets” states like New York by capping state and local tax deductions, also known as the SALT provision, at $10,000. In response, Cuomo has proposed giving employers the option to collect a five percent payroll tax to replace the state income tax on workers.

What’s in the plan?

According to the New York Post, the plan would be phased in over a period of three years and would allow employers to deduct the tax on their federal returns. Employers would also have the option to contribute to charitable funds that are designed to pay for state-sponsored healthcare and education programs to further reduce their taxes.

Before the federal tax reform, New Yorkers’ SALT deductions were not capped, and Cuomo’s payroll tax plan is designed to mitigate the loss of this previously unlimited deduction. However, the option to take the payroll taxes lies with employers and not the individual employee. Further, opposing political leaders have questioned the plan’s feasibility and have raised doubts that it will have the intended impact.

Why is it important?

Although the Tax Cuts and Jobs Act of 2017 intends to lower taxes overall, it also reduces the number of deductions taxpayers can take. Previously, the SALT provisions were the main reason why taxpayers itemized their deductions. Under the TCJA, fewer taxpayers are expected to itemize, which could impact people like the 73 percent of Westchester County residents who pay more than $10,000 in property taxes alone, according to CNN Money.

If Cuomo’s measure passes, it won’t take effect until the state’s fiscal year begins on April 1; and, like the TCJA, many businesses may not fully understand the effect of the changes until tax time next year.

How could the TCJA and proposed payroll tax affect your business? The answer depends on your situation. For 35 years, New York businesses have trusted these answers to the attorneys at Goldburd McCone, LLP.

  • Facebook
  • Twitter
  • LinkedIn

Recent Posts

  • You may not owe a federal estate tax, but what about the state level?
  • How long does the IRS have to collect taxes?
  • What happens in Vegas, doesn’t always stay in Vegas
  • What should I know before I finalize an M&A deal?
  • How long does the IRS have to collect my taxes?

Archives

  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • February 2016
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015

Categories

  • Business Formations
  • Business Tax
  • Criminal Tax Issues
  • FATA
  • FBAR
  • Firm News
  • Form 8300
  • International Tax Law
  • Nonprofits and Taxes
  • Tax Audits
  • Tax Collection
  • Uncategorized

RSS Feed

Subscribe To This Blog’s Feed

Tags

Business Formations (1) Business Tax (2) Criminal Tax Issues (16) employment taxes (2) exit tax (1) expatriation tax (1) federal tax code (2) International Tax Law (6) Nonprofits and Taxes (1) nonprofit tax compliance (2) OVDP (1) Streamlined Offshore Procedures (2) tax audits (38) Tax Collection (41) tax evasion (1) unrelated business income tax (1)

Contact Us

TAKE THE FIRST STEP TOWARD ADDRESSING YOUR TAX ISSUE TODAY

Call Us

212-235-1817

TAKE THE FIRST STEP TOWARD ADDRESSING YOUR TAX ISSUE TODAY

212-235-1817

~|icon_pin~|elegant-themes~|solid

Visit Our Manhattan Office

Goldburd McCone LLP

11 Broadway
Suite 1155
New York, NY 10004

Phone : 212-235-1817
Fax: 212-302-8973
Manhattan Tax Law Office

Long Island Office

499 Chestnut St .
Cedarhurst, NY 11516

Phone : 516-856-0545
Fax: 212-302-8973
Long Island Tax Office

Client Payment Portal
~|icon_pin~|elegant-themes~|solid

Visit Our Manhattan Office

Goldburd McCone LLP

11 Broadway
Suite 1155
New York, NY 10004

Phone : 212-235-1817
Fax: 212-302-8973
Manhattan Tax Law Office

Long Island Office

499 Chestnut St .
Cedarhurst, NY 11516

Phone : 516-856-0545
Fax: 212-302-8973
Long Island Tax Office

Client Payment Portal
REQUEST AN APPOINTMENT
~|icon_pin~|elegant-themes~|solid

Visit Our Manhattan Office

Goldburd McCone LLP

11 Broadway
Suite 1155
New York, NY 10004

Phone : 212-235-1817
Fax: 212-302-8973
Manhattan Tax Law Office

Long Island Office

499 Chestnut St .
Cedarhurst, NY 11516

Phone : 516-856-0545
Fax: 212-302-8973
Long Island Tax Office

Client Payment Portal

Attorney Advertising

© 2021 Goldburd McCone LLP. All Rights Reserved.

Disclaimer | Site Map | Privacy Policy | Business Development Solutions by FindLaw, part of Thomson Reuters

  • Follow
  • Follow
  • Follow
REVIEW US